#stockmarket #marketanalysis #LLY #stocks
Eli Lilly Shares Surge Over 9% After Strong Earnings Report
As the chart of Eli Lilly's (LLY) share price shows today, yesterday's trading closed at a level more than 9% higher than Wednesday's closing price. The main driver of this growth was a strong Q2 report:
→ Earnings per share: actual = $3.92, expected = $2.74;
→ Gross sales: actual = $11.3 billion, expected = $9.99 billion.
Market participants reacted positively not only to the fact that the American pharmaceutical company's actual results significantly exceeded forecasts but also to Eli Lilly's rising expectations for the second half of the year, driven by demand for its diabetes treatment Mounjaro and weight loss drug Zepbound.
Technical analysis of the Eli Lilly (LLY) stock chart shows that:
→ The price action is forming an upward channel in 2024 (shown in blue);
→ After a rebound, the median line of this channel was breached (as indicated by the arrow);
→ As could be expected, this line acted as resistance – as indicated by the high of yesterday's candlestick.
What is the forecast for Eli Lilly (LLY) shares?
Wall Street analysts surveyed by TipRanks remain positive – none of them recommend selling shares of the company, which has the largest market cap in the healthcare sector at over $800 billion. On average, they forecast that LLY shares will reach $955 within 12 months.
This suggests that the current upward channel may remain relevant. However, it’s possible that:
→ The lower boundary will continue to act as support;
→ The boundaries of the bullish gap formed at yesterday's opening may also provide support. A similar action can be seen on the chart – after a wide bullish gap (also formed following a strong report) on 30 April, LLY shares found support near the lower boundary of that gap around $740.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Eli Lilly Shares Surge Over 9% After Strong Earnings Report
As the chart of Eli Lilly's (LLY) share price shows today, yesterday's trading closed at a level more than 9% higher than Wednesday's closing price. The main driver of this growth was a strong Q2 report:
→ Earnings per share: actual = $3.92, expected = $2.74;
→ Gross sales: actual = $11.3 billion, expected = $9.99 billion.
Market participants reacted positively not only to the fact that the American pharmaceutical company's actual results significantly exceeded forecasts but also to Eli Lilly's rising expectations for the second half of the year, driven by demand for its diabetes treatment Mounjaro and weight loss drug Zepbound.
Technical analysis of the Eli Lilly (LLY) stock chart shows that:
→ The price action is forming an upward channel in 2024 (shown in blue);
→ After a rebound, the median line of this channel was breached (as indicated by the arrow);
→ As could be expected, this line acted as resistance – as indicated by the high of yesterday's candlestick.
What is the forecast for Eli Lilly (LLY) shares?
Wall Street analysts surveyed by TipRanks remain positive – none of them recommend selling shares of the company, which has the largest market cap in the healthcare sector at over $800 billion. On average, they forecast that LLY shares will reach $955 within 12 months.
This suggests that the current upward channel may remain relevant. However, it’s possible that:
→ The lower boundary will continue to act as support;
→ The boundaries of the bullish gap formed at yesterday's opening may also provide support. A similar action can be seen on the chart – after a wide bullish gap (also formed following a strong report) on 30 April, LLY shares found support near the lower boundary of that gap around $740.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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#stockmarket #stocktrading #MarketUpdates #marketanalysis #LLY
Eli Lilly (LLY) Shares Fall Over 15% in May
The share price of Eli Lilly and Company (LLY), the world’s largest pharmaceutical company, has seen a sharp shift in market sentiment:
→ From its April low to high, LLY shares rose by over 30%;
→ However, since the start of May, the LLY stock price has dropped more than 15% — the closing price on the last trading day of April was around $895, while today the share is trading near $775.
Why Are Eli Lilly (LLY) Shares Falling?
The decline can be attributed to three key factors:
1→ Q1 Earnings Report: Although the company reported earnings per share above expectations ($3.34 vs $3.25), investors may have been concerned by significantly higher spending on research and development.
2→ Competitor Partnership: CVS Health’s announcement that it will offer Novo Nordisk’s Wegovy instead of Lilly’s Zepbound added further pressure to LLY shares.
3→ Sector Sentiment: Broader biotech sentiment turned negative following reports that the Trump administration is considering a pricing model that would cap drug prices based on lower rates in other countries.
The media is also discussing upcoming decisions from Vinay Prasad, the new head of the FDA division overseeing vaccines and gene therapy.
Technical Analysis: Eli Lilly (LLY) Share Chart
Key price movements (marked on the chart) justify the formation of a downward channel.
On the one hand, bearish sentiment may intensify in light of recent developments. The median line of the channel could act as resistance to any upward movement.
On the other hand, bulls may find support around the $765 level — a former resistance point and the boundary between two price gaps.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Eli Lilly (LLY) Shares Fall Over 15% in May
The share price of Eli Lilly and Company (LLY), the world’s largest pharmaceutical company, has seen a sharp shift in market sentiment:
→ From its April low to high, LLY shares rose by over 30%;
→ However, since the start of May, the LLY stock price has dropped more than 15% — the closing price on the last trading day of April was around $895, while today the share is trading near $775.
Why Are Eli Lilly (LLY) Shares Falling?
The decline can be attributed to three key factors:
1→ Q1 Earnings Report: Although the company reported earnings per share above expectations ($3.34 vs $3.25), investors may have been concerned by significantly higher spending on research and development.
2→ Competitor Partnership: CVS Health’s announcement that it will offer Novo Nordisk’s Wegovy instead of Lilly’s Zepbound added further pressure to LLY shares.
3→ Sector Sentiment: Broader biotech sentiment turned negative following reports that the Trump administration is considering a pricing model that would cap drug prices based on lower rates in other countries.
The media is also discussing upcoming decisions from Vinay Prasad, the new head of the FDA division overseeing vaccines and gene therapy.
Technical Analysis: Eli Lilly (LLY) Share Chart
Key price movements (marked on the chart) justify the formation of a downward channel.
On the one hand, bearish sentiment may intensify in light of recent developments. The median line of the channel could act as resistance to any upward movement.
On the other hand, bulls may find support around the $765 level — a former resistance point and the boundary between two price gaps.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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